Hostess and its products are recognized brand names across the country and the company makes $2.5 billion in revenue each year, notes the AP. Twinkies alone accounted for $68 million of the company’s 2012 revenue. So, it should be no surprise that Hostess’ CEO is confident that another company will buy the names.
“I think we’ll find buyers,” CEO Gregory F. Rayburn told ABC News. “A few have surfaced already since Friday expressing interest in the brand to acquire them.”
“The problem has always been the cost structure, the union rules, the pension legacy, the pension cost and the cost structure,” Rayburn added, explaining why the company had to close.
Hostess announced Friday that it was closing. The company had imposed wage cuts on employees, which resulted in a nationwide strike.
The company has struggled to compete with healthier snack options. It first filed for bankruptcy in 2004 and then again this January. It will head again to bankruptcy court Monday.
Management mistakes, such as recently revealed pay increases for executives, were also to blame.
While Hostess had said Friday that they would be putting their products up for auction, several people tried to take advantage of the rush to get more Twinkies this weekend. Hundreds of auctions for Twinkies, Devil Dogs and other Hostess products have popped up on Ebay.
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Oh no! There's no more Twinkies! It's funny though since people are buying them in order to sell them for a lot, people should just hold on to them. Apparently Twinkies are the only thing that can survive a nuclear disaster. So buy up and save up because in the future there will be no more Hostess brands. :(
ReplyDeleteOmg no more Twinkies, they taste so good. I hope a different company takes over the Twinkie business. And people should start stocking up on Twinkies, Twinkies might be worth a fortune in the near future.
ReplyDeleteThe fact that this company isn't making as much money as before and is slowly decline is a great move for them. If someone does decide to buy them, then business can resume. I love twinkies so I hope that business can come back as soon as possible. Where can I get myself a batch. This blog has made have a sudden crave for them.
ReplyDeleteHahaha...RELAX! Did you guys read the full article or just the title??? haha...
ReplyDeleteIt says another company will pick up/buy the brand and manufacture them! Which I hope!!! I love those things!
I also hope that another company purchases the Twinkie business, so that the business will restart. So many people, including myself, love Twinkies. I think that if the business is gone forever,people are going to protest for the Twinkie business.
ReplyDeleteAhhh Hostess not making Twinkies anymore, I am so depressed. I honestly hate when the products are written off to another company, I don’t know to me it seems to taste different. Like if any of you heard I think it’s the Christie Company (not sure) is not making Oreo cookies anymore, and that was the most original and tastiest Oreo, other no -name brands don’t taste the same. However I guess in this case it might be the same Twinkie so that’s good. As a child I ate Twinkies all the time, man they taste so good :)
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